In the United States, the purchasing power of money is determined by

a. the underlying precious metals that back each unit of currency.
b. the value of U.S. treasury bonds that back each unit of currency.
c. Federal Reserve policy, which controls the money supply.
d. Congress, which controls the money supply.

C

Economics

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Explain how the Fed increases the money supply when it buys bonds in the open market

What will be an ideal response?

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In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points c and d is

A) 100. B) 0. C) 0.25. D) -4.

Economics